Coca-Cola says it has not seen a material impact from GLP-1 drugs

Coca-Cola (NYSE:KO) is not seeing the huge effect from GLP-1 usage that some investors feared when the drugs became more popular over the last few years.

While multiple studies and industry analysis have confirmed that people taking GLP-1 drugs such as Ozempic, Wegovy, and Mounjaro consume less soda and other sugary beverages, the impact is estimated at only a 7% annualized decline in soft drink consumption for GLP-1 users.

Coca-Cola (NYSE:KO) CFO John Murphy weighed in on the topic during a fireside chat with Evercore ISI. Murphy noted that GLP-1s are part of a broader movement of people being more careful in what they consume. Murphy said Coca-Cola (KO) has not seen a material impact from GLP-1s so far, but is staying “on their toes” in how they think about innovation to make sure the beverage giant meets consumer needs. The company’s broad view with portfolio strategizing is that it is better to embrace consumer changes early than to ignore them.

Earlier in the year, Coca-Cola (KO) CEO James Quincy noted that the company does scenario planning for potential headwinds such as regulations, economics, tariffs, and other industry developments.

Following the meeting with Coca-Cola (KO), Evercore analyst reiterated his Outperform rating on KO and price target of $80.

Shares of Coca-Cola (KO) edged 0.3% higher in late Wednesday morning trading.